Ammon News - The Rental Car Association – Jordan has followed with deep concern and surprise the circulated reports regarding the direction of the Land Transport Regulatory Commission, headed by Eng. Riyad Al-Kharabsheh, to cancel the contracts concluded with investors in the tourist car rental sector and to resubmit them for redrafting through the Legislation and Opinion Bureau so that their duration becomes limited to only one year.

If implemented, this approach would constitute a direct blow to legislative and investment stability within the sector and would negatively impact the business environment in the Kingdom. The car rental industry, by its nature, depends on long-term investments, including:
•Fleet acquisitions under multi-year financing agreements
•Banking obligations and financial guarantees
•Operational, maintenance, and insurance contracts
•Employment of hundreds of workers across various governorates

Reducing contract duration to a single year, with the possibility of amendment or termination within a short period, undermines the principle of legal stability, which is the fundamental pillar of any serious investment. It places investors in a state of uncertainty that obstructs long-term planning and expansion.

The Association further emphasizes that any legislative or regulatory amendment affecting the sector must be preceded by prior consultation with investors’ representatives, in order to achieve a balance between the Commission’s regulatory role and the protection of existing investments that contribute to supporting the tourism sector and the national economy.

The Association calls upon the Commission’s administration to open an immediate and responsible dialogue with sector representatives before adopting any decision that may lead to:
•Weakening investor confidence
•Freezing expansion and investment plans
•Putting hundreds of jobs at risk
•Affecting the quality of services provided to visitors and tourists

Legislative stability is not a sectoral demand, but a national necessity to ensure the sustainability of productive sectors and to strengthen the investment environment that the State is keen to support.

The Association affirms that it reserves all legal and administrative options available to defend the rights of its members and to ensure the stability of this vital sector.

Issued by
Rental Car Association – Jordan
Amman – Jordan